P.C.:-

1. Parties have settled the dispute. A query, however, is raised by the Counsel appearing on behalf of defendants regarding deduction of TDS on the interest component of the decree. Apprehension is expressed by the learned Counsel appearing on behalf of defendants that under the provisions of section 194A of the Income Tax Act, on the interest component which is payable, tax has to be deducted at source and if it is not so done, the person who does not deduct tax at source on the interest component would be liable for prosecution and penal consequences under the provisions of the Income Tax Act. It is, therefore, submitted that defendants had withheld the payment of the amount which is payable to the Income Tax Department as TDS and a certificate to that effect was also kept ready.

2. Counsel for plaintiff, on the other hand, submitted that since the amount was being paid for discharge of the liability which had accrued in favour of the plaintiff and against the defendants and the said liability had been crystallized by a decree of the Court, defendants were not liable to deduct tax at source.

3. Counsel appearing on behalf of defendants, however, relied upon the